Questions about being a "Personal Representitive"

[EstateQuestion]

What is the name of your state (only U.S. law)? CA
Hi, My mom was just made a Personal Representative of her brother's estate by the court. This comes after my mom won the Executorship away from her sister, who is appealing that decision. The estate has over 7 or 8 rental properties that need to be managed. My mom is over 80, not in the best health and the properties are located more than 50 miles away from her home. My mom would like to have her son, my brother act as the property manager and pay him the customary property manager salary (7-10 percent on the rental income). My brother has been in Real Estate for over 20 years and is a current licensed broker in California, which meets the California requirement to be a property manager. My brother also lives close to my mom and helps out with other estate duties. My mom's attorney, who is a trial lawyer, is telling my mom she cannot hire my brother to be the property manager. Is the lawyer correct? If my mom cannot hire my brother, can my mom still get a property manager that gets paid from the rental income? Thanks for your help.

 

[anteater]

I doubt that there is any outright prohibition against hiring her son. (But, hey, this is in CA...)

I suspect that the attorney, knowing the situation, feels that hiring the son would simply add fuel to the fire. That and, if the son does not have actual experience managing and operating properties.

I would not think that there would be a problem with hiring a professional third party manager.

 

[tranquility]

Ask the attorney why he feels that way. An administrator has a right and duty to hire appropriate help in conducting the estate appropriately. A manager would certainly fall into that. The attorney may feel the hiring of the son may give the appearance of a conflict and is just advising an abundance of caution.

 

[EstateQuestion]

Thanks Anteater and tranquility for your thoughts.

 

[EstateQuestion]

Can a Personal Representative use estate rental income for legal fees?

What is the name of your state (only U.S. law)? California
Hi, My mom has been designated as the Personal Representative for her sibling's estate after winning the estate back in court against her other sibling who claimed the entire estate for himself. The losing sibling has filed an appeal. Can my mom use any of the estate's rental income to respond to the appeal? There is also a property that belongs to the estate, but the deeded owner refuses to give it back to the estate (constructive Trust). The deeded owner is not a party to the appeal. Can estate rental income be used for legal fees to recover the property? Thanks for your time.

 

[LdiJ]

What is the name of your state (only U.S. law)? California
Hi, My mom has been designated as the Personal Representative for her sibling's estate after winning the estate back in court against her other sibling who claimed the entire estate for himself. The losing sibling has filed an appeal. Can my mom use any of the estate's rental income to respond to the appeal? There is also a property that belongs to the estate, but the deeded owner refuses to give it back to the estate (constructive Trust). The deeded owner is not a party to the appeal. Can estate rental income be used for legal fees to recover the property? Thanks for your time.

I think your mom needs to consult a probate attorney on those issues...particularly on the second issue.

 

[tranquility]

I agree with getting an attorney. But, if mom is now the administrator with no delay (Some judgments may have a delay before being effective.), then she has the power and duty to defend the estae. She can most probably use estate/trust funds in an attempt to get the estate's property back under ownership and control and can defend the administrator from challenge. However, be careful. Just because estate funds may be used does not necessarily mean the administrator will not have to replace them if the actions are considered a breach of her fiduciary duties. (Which is why attorney advice is essential.)

 

[EstateQuestion]

Can a Personal Representative use estate rental income for legal fees?

Thanks Tranquility for a thought provoking reply. Have passed on the information to my mom who has been in contact with a probate attorney. Thanks LdiJ for the suggestion.